Dow Chemical and DuPont to merge

GLOBAL – Dow Chemical Co and DuPont Co have announced a merger that would create a US$120 billion company, reshaping the chemical and agricultural industries.

Based on 2014 figures, the combined entity – DowDuPont - would have about US$90 billion in total revenue and an even wider product portfolio.

With the move coming amid a dramatic change in the earnings outlook for both companies, due to a slowing of emerging market growth and the strengthening of the US dollar, the partners say the merger would help combine complimentary operations in agriculture, materials and specialty products, increasing their scale and uncovering billions in cost synergies.

Those benefits are then expected to pay off when DowDuPont splits into three separate publicly traded businesses focusing on agriculture, material sciences and specialty products in nutrition and electronics 18 to 24 months after the merger closes – scheduled to happen in the second half of 2016, subject to regulatory and board approval - freeing them to operate independently.

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